Ecommerce a failed business model

Once thought as a ubiquitous mode of doing future retail business, a replacement for brick mortar shop is today struggling to keep its foot steady on shaky grounds. E-commerce is a fight to death game where entire world’s fighter gather in one place and fight continues wjthout an end, at anytime there is only one winner who would face new fighter who keep coming, all others are loser.

It has become very difficult to define “successful” in e-commerce, in ordinary sense if I sell something, I immediately make profit because I dont like to sell anything at loss, although there is maybe some fixed cost but it will pay off in future because every unit is sold at profit. But case is not as simple with e-commerce, there is fixed cost as well as very high variable cost, goods are sold and delivered at loss just to make brand popular. Generally an e-commerce entity become profitable after a decade provided it has survived.

Only one or two survive and become large corporations, when they sit on huge cash, things become easy, viable ways exist to edge out competition and challenge from new entrants. Most company use a single tactic “acquisition”. Buy them early, buy them small before they become a challenge or rely on aggressige discount campaign just to steer away customers from competitor.

Internet eliminated the distance limitation and the “area of influence” existed in earlier brick mortar industry is no more, gone are the possibility where everyone could earn their bread and butter. The same strength of e-commerce is also the enemy of itself, at anytime only one winner can exist, either you are growing or drawning — panic haunts all the time everyone from startup to biggies. Situation is not good for vendors either who operate within an e-commerce platform because only one with lowest price listing will be sold. Thanks to awesome search and filter options on these sites, feature is killing the business.

E-commerce business heavily rely on investment and VC fundings, they keep working on expansion plans, so never a day comes when they have any profit all income is reinvested in marketing and expansion.

Most challenging thing is to acquire loyal customer for which they heavily rely on discount all the time, try to ship items at loss and all that money come from VC backing, if cash inflow is stopped anytime, e-commerce company dies almost immediately, as long they operate keep losing money and investors do not see any return in distant future, For a growing ecom, increased sales means increased losses, still VCs find new startup investment attractive hoping that they will find a “greater fool” and sell equities at profit.

It s proven well that e-commerce market is price sensitive, customer shift bases quickly when they see a cheaper deal, they do not develop emotional bonds with any brand, unless customer support is superb. This e-commerce thing is just a transitory movement and sure we’ll have another stable business model to evolve in near future.

Heat is the enemy of Laptop

Learn this now or later hard way — heat and the dust are the worst enemy of laptop. Although laptops are called computer but they are radically different being than a desktop PC, a laptop does the same work but build wise they are more similar to modern day smart phones. You may argue like — smartphone last forever if not watered or dropped, they only gets slow over the time.

But the fact is smartphones still to the date remains a low power, low heat and low speed device and thats the secret why they last long. While many of us think laptops are just like desktop computers with added portability which is a fatal thinking. As I said laptop’s internal circuitary is made of components very different from desktop computers and have much lesser robustness and endurance against heat.

These small components expand and contract in heat cycles when you turn it on or off. After a prolonged period of use they eventually wear out. Make sure you do not run any software and games long that heat it up above 70° C, always use temperature monitor software, clean the laptop every couple of month, specially the air passage, heat sink and motherboard. re-apply thermal paste on CPU if you hear fan sound.

If you start hearing fan sound abnormally high, its time to panic. To stop further damage, you can also underclock your CPU or disabled turbo boost feature built in intel processors. Ironically laptop makers and manufacturer never hint buyers for possible dangers and precautions.

When will 4th gen intel processors stop selling

3rd generation (Sandy bridge) intel processors have already phased out and it is no more easy to buy them, I had hard time with hardware dealers find one, so far only one dealer offered 3rd gen i5. Although on ebay you’ll find listings of 3rd gen processors but most of them are refurbished, used and come with “seller warranty”.

Effectively there is not much a difference between 3rd gen and 4th gen cpus, other than later being better at power efficiency and more in graphic capabilities, if you are building a desktop pc and you are not a gamer/renderer then 3rd gen could be a great deal and save you 50 dollar minimum.

But here the catch, lets say if you have i3 and if you are considering future upgrade to i5 of your pc then the motherboard (H61 chipset) used for 3rd gen is not compatible with 4th gen processors neither you can use a 3rd gen processor on H81 motherboards. Just to remind you again that 3rd gen i5 are not available anymore.

Third gen intel processor (aka Ivy bridge) were launched in Apr 2012, and in three year span they are becoming dorment. if someone wants to upgrade their processor then time is now or never.

Today 5th gen PCs have already hit the market and 4th gens (launched in jun 2013) are looking older it is safe assume 4th gen will start phasing out somewhere in mid 2016, if not earlier, I am not taking year by year faster innovation into account.

What this could mean to you — if you are going with a 4th gen compatible pair of motherboard and processor and look forward for a future processor upgrade in 2016 and years beyond, you’ve got a good news: lets say 4th gen i5 or i7 wont be there but 5th gen processors are backward compatible with your motherboard…Hurray!!

Make sure you buy a motherboard of H81 chipset with LGA 1150 CPU socket.